Someone just showed up here at my office and wanted to buy me out and sign me to there company and give me 50% rights.
They just left but said they will give me the world....this is kinda funny that someone thinks they can put money down on the table and buy me out like that!
That was the 3ed time tho.
Experienced Scrapper
|
that's not surprising at all easy...one day the price may be right and you can start all over....after a nice vacation in your paradise of choice !! BTW, you shared a few months ago that you needed to take some time to look for a woman.....did I miss an update on that!? And, for goodness sake, don't take any advice from the likes of injunjoe !! lol
If someone wanted to buy me out, then they buy 120% of my company. *GRIN* I did not make a mistake on the percentage. I can tell you horror stories of entrepreneurs who sold 50% of their company.
Still need a girl
There offer was this.
200k + 50% of there company and full time work with them. Me taking over there whole copper and E-waste at two yards.
Did not reject as of yet...but did not take the offer yet either...Don't know if I want to work under someone else...kinda like the fact that I am the owner of my own company an....alot of people have truck IN ME...I don't know about in them. There is a reason why people deal with me.
President, VIP Recycling
|
Easy, I have been running companies since I was 14, thanks to my dad's assistance for the first 4 years.Originally Posted by easyrecycle
I have also worked for other companies, when I was in between companies, and even when I was running a few sometimes too.
However, once you work for yourself, whether under a company name, or like many scrappers, just themselves, it is very hard to work for anyone else.
I can't say what I would do if I was you, but like you mention, I would definitely have them checked out, and ask them to provide a copy of the contracts, that make you 50% owner of their company, and have your own lawyers look it over.
George Beale - Founder & President - info@viprecyclingjunkremoval.com
VIP Recycling Junk Removal LLC - Premier Scrap Metal, Junk, & Electronic Recyclers!
http://www.viprecyclingjunkremoval.com
Experienced Scrapper
Doesn't sound like a bad offer from where I'm sitting. However, I know nothing of your circumstances, etc. Haha
GeorgeB has it right. If you're serious about it, hire a lawyer. A reputable lawyer that YOU hired.
Good luck!
Experienced Scrapper
|
|
Forgive them easy......those of us who know you well, know that you have plenty of legal and business advice and will know exactly what to do and how to do it....but we're pulling for you, praying for you and sending positive thoughts for clearest thinking and decision making right now.
|
If you go thru with it, IMHO demand 60% share...but don't settle for less then 51% since that 1% is all you really need.
Recyclable Material Merchant Wholesaler
Certified Zip-Tie Mechanic
"Give them enough so they can do something with it, but not too much that they won't do nothing."
President, VIP Recycling
|
|
Dee,
My advice to him, was not to insult him by making it sound like that he would not be smart enough or have enough common sense to get a lawyer to look over the deal. I was speaking to him, as I would anyone, regardless of what business the person might be in, and speaking from years of experience in all types of situations.
Experienced Scrapper
Ditto 100%.
I reinstate, if I may, that I mentioned I wasn't aware of his circumstances, etc. in my original reply.
Then again, doesn't really matter what anyone said. Original post doesn't appear to be looking for any advice or opinions on the matter. We're all just BS'ing really.
I vote this thread be locked before it gets too much further out of hand.
Didn't you turn 21 not too long ago? If I had a 200k offer on the table at age 21 I would be giddy. Can't say I would be excited about partnering with another. Best of luck on whatever you decide to do, and hope that no matter what, you continue to hang around the forum.
|
talk to a good business advisor and business lawyer.
Metal Recycling Entrepreneur
200k plus 50%. Wow that is a deal. What kind of yearly numbers are you generating to bring that kind of offer to the table. I mean didn't you say you working out of storage units.
|
Send em on my way if you don't go through with it. For 200K I'll sell em 100% of my company! Tell em that includes my truck, trailer, and all the tools, routes, n contacts. Everything except 1 ol broken timing chain from a 1985 Toyota. But that's a story for another post.....
If you ever sell a business you need to look at a few things.
1. his 200k 50% share what is it worth? 50k now? But if you are rapidly growing that share might be worth 500k in just a few years.
2. He can sell his share of the business at any time to any sleeze ball.
3. Will he be doing 50% of the work or sitting back just rolling in profits?
Normally people sell all or nothing. If they do sell it's not a controlling share and it's very expensive.
There are some very good points here. Reason why I am not going to sell is for the fact that people trust me. They want to buy me out and close down my company and go work for THERE company with 50% rights.
This company started first of the year with me doing this long before but not under a company name..I was doing it for beer money but...it was at a point where it was more than just beer/food money...it started to pay ALL my bills with money left over, so I turned it into a company.
I had looked at this offer by my self and with other people of trust, and we are not going to reject or take the offer.
Simple numbers here but not 100% right (just rounding close to the real numbers)
1 quarter money out 7,500 + 5,500
2 quarter money out 27,500 + 8,000
3 quarter money out 18,000 + 6,000
I wont post money in...just money out. Not bad for the first year and my company is not in running into a hole.
Metal Recycling Entrepreneur
So you have roughly put out 80K this year.
pretty much + or - a few dollars.
I'm not making money hand over fist but my company has grown very fast and the amount of money I am making per pound of scrap is better than ever so I am able to buy more for more and still make profit. I all so went global not to long ago and I have three deals people are trying to work with me from three countries.
All I can say..this has been a long ride and I'm enjoying every bit of it. I would love to see how this year ends and how next year starts.
Metal Recycling Entrepreneur
I am not trying to be mean here, but I don't think your business can be worth 200K. Here is the reason. Lets say by years end you put out 110K, and you make a liberal 50% profit, that is only a profit of 55k. Lets say your expenses are 20% of your profit, which includes labor(you and your workers) and then tools, rent etc(i know you said you get gas free). That is 11,000 off the 55k, so now your net profits are 44K. If I were purchasing a business i am looking at numbers. Growth to me is important, but paying the bills is the most important.
Metal Recycling Entrepreneur
Growth to investors is often more improtant than paying the bills however as this money might not be needed to pay bills as it is with a lot of buyers. Plot the quarterley results and predict the future. maybe he sees that future very rosy indeed for Easyrecycles. Lets say I buy a house to rent. If it were on mortgage i'd be looking for an 8% compounded return to pay for mortgage, upkeep and such and end with perhaps a small surplus per month. I would look for an easy turnover as I can't afford to pay for the house if no one is in it. If I had the cash on hand or am less reliant on its monthly income, I can be more speculative. I could now buy a property that whilst in the meantime might not cover monthly expenditure could reap rewards in the future, ie a new complex being built near it in the future that will raise it's capital appreciation as well as increase it's monthly income above the 8% I would have looked for had I been reliant on it covering it's running expenses. These are numbers looked at by investors. Buying a fast growing company for only its capital value would not be feasible and no one would be crazy enough to sell their company on this basis
Last edited by harrisvh; 10-12-2011 at 12:13 PM.
There are currently 1 users browsing this thread. (0 members and 1 guests)
|
Browse the Most Recent Threads
On SMF In THIS CATEGORY. 
OR 
|
Posting Permissions
Register To Reply
Bookmarks